1. 0 IDB Initiatives for Developing Trade and Transport across Europe, Asia and the Arab region Dr. Walid Abdelwahab, Director Infrastructure Department

2. Snapshot of IDB Group Trade and Transport across IDB regions Initiatives of the IDB Group for developing trade and transport across Africa, Asia and the Middle East 1 Outline

3. 2 Snapshot of IDB Group - Overview 1975 1981 1994 1999 2008 Sector distribution of IDB project financing US$ 84.9 billion total approvals since inception Transport is a priority for IDB

4. 3 Snapshot of IDB Group – The only South-South MDB present across Africa Asia and the Arab regions AAA rating (S&P, Moody’s) Zero Risk (Basel Committee on Banking supervision) Capital increases (May 2013) Authorized capital tripled to US$150 billion Subscribed capital tripled to US$ 75 billion

5. 4 Snapshot of IDB Group – Strategic focus on regional integration Mid-term business strategy Reform IDB Alleviate Poverty Promote Health Universalize Education Prosper the people Empower the Sisters of Islam without breaching the tenets of Islam Expand the Islamic Financial Industry Facilitate Integration of IDB Member Country Economies Among Themselves and with the World Improve the Image of the Muslim World The strategic thrust of the IDB Vision 2020 is to support and promote greater economic cooperation and integration at regional level. The strategic thrust of the IDB Vision 2020 is to support and promote greater economic cooperation and integration at regional level.

6. 5 “While the global road and rail networks appear to be integrated and interconnected, this is far from being the case. ” J-P. Rodrigue, the Geography of transport systems Developing Trade and Transport across IDB regions 1) Integration and interconnection of transport networks Missing links along African Hihways Source: AfDB Flat view of main global land transport networks Source: J-P. Rodrigue, the Geography of transport systems

7. 6 Developing Trade and Transport across IDB regions 1) Integration and interconnection of transport networks Development of Mega-hubs across IDB member countries has triggered integration and interconnection of maritime and air transport networks Airports with annual traffic of more than 20 million PAX Soekarno-Hatta IA, Indonesia Dubai IA, UAE Ataturk IA, Turkey Kuala Lumpur IA, Malaysia King Abdelaziz IA, KSA Ports with annual traffic of more than 2 million TEUs Dubai, UAE Port Klang, Malaysia Tanjung Pelepas, Malaysia Jakarta, Indonesia Jeddah, KSA Port Said, Egypt Khor Fakkan, UAE Salalah, Oman Bandar Abbas, Iran Istanbul, Turkey Surabay, Indonesia Tangier Med, Morocco Map of the main air and maritime mega-hubs across IDB countries Source: IDB

8. 7 Developing Trade and Transport across IDB regions 2) Regional Economic Cooperation ECOWAS Economic Community of West African States ECOWAS Economic Community of West African States UEMOA West African Economic and Monetary Union UEMOA West African Economic and Monetary Union AMU Arab Maghreb Union AMU Arab Maghreb Union LAS League of Arab States LAS League of Arab States GCC Gulf Cooperation Council ECO Economic Cooperation Organization ASEAN Association of Southeast Asian Nations +Others e.g. SAARC, IGAD, etc. COMESA Common Market for Eastern and Southern Africa IDB Supports regional economic cooperation across sub- regions and partners with the Regional Economic Communities for the integration of member countries Main Regional Economic Communities that IDB partners with

9. 8 IDB Regions are among the least integrated in terms of intra and inter-regional trade… Developing Trade and Transport across IDB regions 3 ) Trade integration Origin/Destination North America Latin AmericaEuropeCISAfricaMiddle EastAsia North America 48.78.416.80.61.72.721.0 Latin America 23.925.618.71.32.6 23.2 Europe 7.41.771.03.23.13.09.3 Commonwealth of Independent States (CIS) 5.61.152.418.61.53.314.9 Africa 16.82.736.20.412.33.724.1 Middle East 8.80.812.10.53.210.052.6 Asia 17.13.217.21.82.74.252.6 Source: WTO Intra and inter-regional merchandise trade statistics by region as a percentage of total 2010 exports

10. 9 Trade Preferential System (TPS-OIC) Framework agreement - 2002 PRETAS (Tariffs) - 2010 Rules of Origin – 2011 Developing Trade and Transport across IDB regions 3 ) Trade integration But the entry into force of the TPS-OIC System and the initiatives under way to develop intra-OIC trade demonstrate promising results: intra-OIC set to reach 20% by 2015

11. 10 IDBG Initiatives for developing trade and transport across regions 1) Financing of critical transport infrastructure Total Operations : 393 Total Operations : 57 51% of total in last 5 years Total Financing : ID 4.42 Bn Total 1429-34H: ID 2.27 Bn Transport Scorecard

12. Source: A study of international transport corridors in OIC member countries, IDB, 2011 11 Our focus on international corridors Trans-Saharan Highway SEETO Corridor CAREC Corridors Silk Road Machreq Corridors Prioritization criteria for international transport corridors  Involvement of OIC Member States  Intra Regional Trade Potential  Inter Regional Trade Potential  Presence of Missing Links  Importance of Non-Physical Barriers  Distance from Ports  Connections with Capital Cities  Connection Between Locations of Economic Importance  Transport costs along the corridor Some Ongoing Projects across IDB constituency

13. 12 IDBG Initiatives for developing trade and transport across regions 2) Strategic initiatives with global and regional institutions OIC Institutions Global and regional Institutions

14. 13 IDBG Initiatives for developing trade and transport across regions 3) Cooperation and capacity development

15. 14 IDBG Initiatives for developing trade and transport across regions 4) The way forward Strategic alignment Effective delivery Knowledge generation and Innovation Connectivity Scale-up Sustainability

16. 15 IDBG Initiatives for developing trade and transport across regions 4) The way forward Employment Generation Sustainability & Inclusiveness Enhancing “Software” for Economic Growth Value-Adding Productivity Connectivity: Physical & Knowledge Arab countries SSA Countries Asia+Surinam CIS & Albania Regional Partnership Strategies

17. 16 IDBG Initiatives for developing trade and transport across regions 4) The way forward Landmark initiatives

18. 17 IDBG Initiatives for developing trade and transport across regions 4) The way forward Partnerships

19. شكرا لكم Thank you Walid Abdelwahab wabdelwahab@isdb.org 18